Current Status Introducing Body:House Bill Number:3021 Primary Sponsor:P. Harris Committee Number:30 Type of Legislation:GB Subject:Adult care programs, income tax credit Residing Body:House Current Committee:Ways and Means Companion Bill Number:115 Computer Document Number:436/12673AC.93 Introduced Date:19930112 Last History Body:House Last History Date:19930112 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:P. Harris Waldrop Neilson Rogers Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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3021 House 19930112 Introduced, read first time, 30
referred to Committee
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TO AMEND SECTION 12-7-1260, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INCOME TAX CREDITS FOR EMPLOYERS FOR CHILD CARE PROGRAMS, SO AS TO INCLUDE ADULT CARE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-7-1260 of the 1976 Code, as added by Section 43, Part II, Act 189 of 1989, is amended to read:
"Section 12-7-1260. (A) A taxpayer who employs persons in any capacity may claim as a credit against his state income tax, bank tax, or premium tax liability an amount equal to fifty percent of his capital expenditures, but no more than one hundred thousand dollars, for costs incurred in establishing a child or adult care program for his the taxpayer's employees. As used in this section, an adult is a person eighteen years of age or older related by blood or marriage to an employee. A credit claimed under this section, but not used or available for use in a taxable year, may be carried forward for the next ten taxable years from the close of the tax year in which the expenditures are made until the amount of the credit is taken.
(B) For purposes of this section, `expenditures for costs incurred in establishing a child or adult care program' includes, but is not limited to, expenditures, including mortgage or lease payments, for playground and classroom equipment, kitchen appliances, cooking equipment, and real property, including improvements. The program and operation of the program must meet the licensing, registration, or certification standards prescribed by law.
(C) The taxpayer under subsection (A) also is allowed as a credit against his state income tax, bank tax, or premium tax liability an amount not exceeding fifty percent of the child or adult care payments incurred by the taxpayer to operate a child or adult care program for his the taxpayer's employees, or made directly to licensed or registered independent child or adult care facilities in the name of and for the benefit of an employee of the taxpayer, which employee's children or adult family members are kept at the facility during the employee's working hours. The payment may not exceed the amount charged to other for the care of children or adult family members of like age and abilities of individuals not employed by the taxpayer. The credits allowed by this subsection may not exceed a maximum of three thousand dollars for each employee if the employee receives payments for either child or adult family member care and six thousand dollars if the employee receives payments for both.
Where an employee chooses to utilize the provisions of this subsection which authorizes authorize direct payments to licensed child or adult care facilities not operated by the employer, expenses attendant to the organization and administration of such a direct payment program incurred in the first year also are also considered start-up expenses or expenditures for establishing a child or adult care program for purposes of the fifty percent tax credit for start-up expenses authorized by subsection (A).
(D) For purposes of the credits allowed by subsection (B)(C), the taxpayer is required to retain information concerning the child or adult care facility's federal identification number, license or registration number, payment amount, and in whose name and for whose benefit the payments were made. In addition, a taxpayer is allowed to include in the amount of the payment for calculation of the credit any administrative cost cost associated with payment to licensed or registered independent child or adult care facilities not to exceed two percent.
(E) The credits established by this section taken in any one tax year also are also limited to an amount not greater than fifty percent of a taxpayer's state income tax, bank tax, or premium tax liability for that year."
SECTION 2. The credits allowed by the amendment to Section 12-7-1260 of the 1976 Code in Section 1 of this act only apply to expenditures made after 1993.
SECTION 3. This act takes effect upon approval by the Governor.